As the compounding rate becomes lower and lower, the future value of inflows approaches
A)0.
B)the present value of the inflows.
C)infinity.
D)More information is needed.

Question

Quizplus · Accepted Answer

As the compounding rate approaches zero, the future value of inflows will approach the present value of inflows. This is because at lower compounding rates, the impact of interest earned over time becomes minimal, hence making the present value more significant.

As the Compounding Rate Becomes Lower and Lower, the Future